EFFECTS ON MARKET.
The first effect of the higher Bank Rate, as I have already said, has been to occasion a decided throw-back in the prices of securities. On this market the decline has been. considerable, almost everything being affected from Coniols to Mining shares,. but in Wall Street the losses have been still heavier. Moreover, as is only natural, the markets remain in an unsettled condition owing mainly to uncertainty as to whether the measures taken will be successful in dealing with the situation-Lin other words, in reducing the demands upon financial credits for finan- cing speculation in the Stock Markets. It is in this respect that the key to the position lies with New York, where it must be confessed that the .monetary authorities--that is the Federal Reserve Board—have an exceedingly difficult taak in controlling "the" situation. • That difficulty is increased. by the great amount of funds which are .outside the ordinary control of the banks. - I have referred already to the increase of liquid Wealth in Amerita result= ing from many years of prosperity, and much of that wealth is in the hands of big financial and industrial ups, who appear to have both the, will and the power o use their funds independently-Of the judgment of the hanks in financing ,Wall Stieet. _
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